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Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well as offering take-out and free home delivery services.
Milano Pizza is a small neighborhood pizzeria that has a small area for in-store dining as well as offering take-out and free home delivery services. The pizzeria's owner has determined that the shop has two major cost driversthe number of pizzas sold and the number of deliveries made. The pizzeria's cost formulas appear below: Fixed Cost per Month Cost per Pizza $ 4.20 Cost per Delivery $6,318 $ 810 $ 0.30 Pizza ingredients Kitchen statt Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous $3.10 $1.20 $ 830 $ 560 $2,270 $ 930 $ 8.15 In November, the pizzeria budgeted for 2160 pizzas at an average selling price of $19 per pizza and for 180 deliveries. Data concerning the pizzeria's actual results in November were as follows: Actual Results 2,260 160 Pizzas Deliveries Revenue Pizza ingredients Kitchen Staff Utilities Delivery person Delivery vehicle Equipment depreciation Rent Miscellaneous $ 43,690 $ 10,810 $ 6,25 $ 985 $ 496 $ 1,26 $ 560 $ 2,278 910 Required: 1. Complete the flexible budget performance report that shows both revenue and spending variances and activity variances for the pizzerla for November. (Indicate the effect of each variance by selecting "F" for favorable. "U" for unfavorable, and "None" for no effect (l.e.. zero varlance). Input all amounts as positive values.) Milano Pizza Flexible Budget Performance Report For the Month Ended November 30 Revenue and Spending Flexible Variances Budget 2,260 160 Activity Variances Planning Budget Actual Results 2.260 160 Pizzas Deliveries $ 43,690 Revenue Expenses: Pizza ingredients Kitchen staff 10,810 6,250 Utilities 985 496 1,026 Delivery person Delivery vehicle Equipment depreciation Rent 580 2.270 910 Miscellaneous
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